Julius Bär takes CHF99 million hit on ailing Italian unit
Swiss wealth manager Julius Bär has downgraded its expectations for attracting new assets from rich clients and announced a CHF99 million ($100 million) write-down on its troubled Italian subsidiary Kairos.
This content was published on
1 minute
swissinfo.ch/mga
Julius Bär issued the warning on Tuesday, less than three months into the tenure of new CEO Philipp Rickenbacher. Although assets under management have grown 10% so far this year (CHF422 billion), net new money has weighed in with a disappointing 3% growth.
“It is therefore unlikely that the group will achieve its medium-term target this year,” the bank said it a statementExternal link, referring to targets of 4-6% of new assets deposited by wealthy clients.
The bank also quantified the extent of its problems with subsidiary Kairos. Since completing the buyout of the Italian asset management company last year, Julius Bär has seen top managers leave the unit, taking clients with them.
Assets under management have fallen from CHF11.8 billion at the end of 2018 to a current total of CHF8.4 billion. This has resulted in a non-cash goodwill impairment of €90 million (CHF99 million) for the group as a whole. This means that the bank will not recover the premium it paid to acquire Kairos.
Julius Bär did offer one sweetener to shareholders in the shape of a CHF400 million share buy-back that will run from November 20 to the end of February 2021. The bank also said its cost-cutting programme was running on track to bring savings.
Popular Stories
More
Foreign affairs
What Trump’s return or a new Harris administration would mean for Switzerland
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
This content was published on
One million francs, 34 million euros and around 830 kilos of gold: this is the fortune that two Swiss nationals are accused of having moved across borders for at least four years.
Girls in female-dominated classes earn more later on
This content was published on
At the age of 30, women from school classes with a 55% share of girls earn $350 more per year than women from classes with a 45% share of girls.
This content was published on
Geneva-based luxury goods group Richemont reported a downturn in performance for the first half of its 2024/25 financial year. Both sales and profit declined.
COP29: Swiss NGOs call for strong financial support
This content was published on
Ahead of COP29, Swiss NGOs call for wealthy nations to pay $1,000 billion a year to help other countries solve climate problems.
Real Swiss wages likely to rise in 2025, says UBS bank
This content was published on
Higher wages and falling inflation are likely to boost Swiss purchasing power, which will be dragged back by rising health premiums.
This content was published on
Switzerland has a new tectonic map at a scale of 1:500,000, containing updates to geometry, distribution and nomenclature of the tectonic units.
This content was published on
Swiss artist Daniel Spoerri, known for his artworks using leftover food with dirty cutlery and crockery, has passed away in Vienna at the age of 94.
Climate change tipped to alter Swiss avalanche patterns by 2100
This content was published on
Climate change is expected to result in fewer avalanches overall in Switzerland but to increase the danger of wet snow avalanches by 2100.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss wealth manager picks new boss to boost performance
This content was published on
Hodler will continue to assist Rickenbacher into 2020 as the bank seeks to reduce annual costs by CHF100 million ($101 million), including a 2% reduction in headcount by the end of this year. Hodler will then end his 21-year association with Julius Bär to “pursue other projects”, the bank said in a statementExternal link. Rickenbacher,…
Venezuelan ex-minister hoarded money in Switzerland
This content was published on
As US justice authorities investigate corruption among Venezuela’s former leaders, there is evidence that embezzled funds flowed into Swiss banks.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.